SOLE – The International Society of Logistics

Introduction to Logistics
and
Integrated Logistics Support (ILS)

Presented to University of St. Thomas

by Chapter 6 District 6 Minneapolis – St. Paul
April 30, 2003
 Logistics in History

Historically, Army quartermasters have

been charged with:
Examples:
• Feeding soldiers (consumables, preparation service)
• Providing fodder for horses (foraging,
transportation)
• Procuring uniforms, equipment, weapons, and
ammunition (supply and repair management)
• Supporting aircraft, ships, tanks, guns, vehicles
(fuel, spare parts, repair, transportation, storage,
interoperability)
 Scope: Manufacturing vs. After-Sale

75 % of U. S. employment is services:
21 % of employment is goods
producing:
– Construction
– Manufacturing
4 % of employment is extraction:
– Agriculture
– Mining

Source: Statistical Abstract of the United States,

1997 for 1990
 Emphasis: Products vs. Systems

17.8 % of Gross Domestic Product is

manufacturing (1990):
– Consumables
– Non-repairable products
– Repairable (consumer) products
– Repairable (industrial, complex) products
• Mobile (self-propelled) vs. Installed
• Custom Engineered vs. standard product
 Product Life Cycle

• Product life cycle showing net profit highest in

mature phases.
 Systems Structure

• System (prime contractor)

– Subsystem - product (subcontractor level)
• Sub-Subsystem
– Component
» Replaceable Assembly / Part
» Application-Operating System / Software
 Support Concepts -

• Product Life Cycle Management

• Life Cycle Cost (LCC)

• Service Engineering (products)

• Integrated Logistics Support (ILS)

• Logistics Engineering (complex systems)

 Product & System
Life Cycle Management

Product System
• Development • Pre-Concept

• Introduction • Concept

• Growth • Demonstration and

Evaluation
• Maturity
• Full Scale Development
• Decline
• Production and Operation

• Phase Out
 Concept - Life Cycle Cost (LCC)

• (1) All costs associated with the

system life cycle,
• (2) The total cost of acquisition and
ownership over the life cycle,
• (3) Approach to costing that
considers all costs, and an
• (4) Approach whereby the value of
different concepts can be made by
comparison of different LCC
estimates and the concept with the
minimum LCC is preferred.
Concept - Support Elements
Support Concepts – Elements (cont’d)
Integrated Logistics Support (ILS)

“A disciplined, unified and iterative approach

to the management and technical activities
necessary to (1) integrate support considerations
into system and equipment design; (2) develop
support requirements that are related consistently
to readiness objectives, to design, and to each
other; (3) acquire the required support; and (4)
provide the required support during the
operational phase at minimum cost”.
 Logistics Engineering

“Those basic design related functions implemented as

necessary to meet the objectives of ILS.”

➨ Initial definition of system support

requirements
➨ Development of design input criteria
➨ Evaluation of alternative design
configurations
➨ Determination of resource requirements
➨ Ongoing assessment of support
infrastructure
 Logistics Definition #1

“The process of planning, implementing, and

controlling the efficient, effective flow and
storage of goods, services, and related
information from point of origin to point of
consumption for the purpose of conforming to
customer requirements”.

.
The professional organization for individuals who have an interest in logistics management
 Logistics Definition #2

“The art and science of management,

engineering, and technical activities
concerned with requirements, design, and
supplying and maintaining resources to
support objectives, plans, and operations.”
 Logistics Definition #3

“Logistics is the science of planning and carrying out the

movement and maintenance of forces. In its most
comprehensive sense, those aspects of military operations
which deal with: (a) design and development, acquisition,
storage, movement, distribution, maintenance, evacuation,
and disposition of materials; (b) movement, evacuation, and
hospitalization of personnel; (c) acquisition or construction,
maintenance, operation, and disposition of facilities; (d)
acquisition or furnishing of services.”

North Atlantic Treaty Organization (NATO)

 Affordability
• Affordability is made up of:
– Schedule
• Affects Cost when compressed
– Performance
• Affects cost by quality required
– Cost
• The driver in affordability
 Affordability
• Where are the major costs a product
Life Cycle
– Design/Development
– Procurement/Manufacture
– Support
– Disposal
 Affordability
• Costs of Life Cycle
 Affordability
• Methods of estimating costs
– Life Cycle Cost (LCC)
• Costs to design, manufacture, use and dispose
of a product
– Total Ownership Cost
• LCC plus costs to recruit, train and support the
product operating personnel
• Design to Cost
– Working to the amount of funds available
Affordability
 Affordability
• Support Factors Creating Costs
– How many products
– Where and how many sites
– How many products at each site
– How is repair accomplished
– How many people are needed to repair
– What training is needed by the maintenance people
– What repair parts are needed and how many
– How fast can failed units be repaired
– Repair/support equipment is needed
 Affordability
• How is support designed into the
product
– Analysis of the design for:
• Maintainability – How fast can it be repaired
• Reliability – How long will it work without failing
• Availability – Is it available when needed
 Affordability
• How is the lowest LCC cost achieved
– Tradeoff studies
• Design tradeoff
– For ease of repair and cost of repair parts
• Manufacturing tradeoff
– For less environmental cost at disposal
• Support tradeoff
– Where to repair and at what level (O,I,Depot)
 Affordability
• Imbalance between “cost” and “System Effectiveness”

Life Cycle Cost

COSTS System Effectiveness

Research & Development
Performance & Effectiveness
Production & Construction
Reliability, Maintainability & Supportability
System Operation
Maintenance & Support Production & Disposability

Retirement & Disposal System Quality

Other Technical Factors
 Affordability
• Extra costs created by lack of support
analysis
– Peculiar support equipment
– Special Tools
– Test equipment
– Training
– Support of support equipment
 Affordability
• Conclusion
– Supportability is a main factor in the cost of
owning a product
– The most efficient way to get to the lowest
LCC is analysis of the design
Design and Supportability

The tale of four vehicles

 Measures of Logistics

• Reliability
• Maintainability
• Availability
 Reliability
• How often a thing breaks. Expressed in
failures/unit of measure.
• Examples
– 385 failures/million hours of operation
– 68 failures/100,000 miles
– 7 failures/million cycles
 Maintainability
• The ease with which an item is repaired

• Includes time to diagnose the problem,

fix the problem and verify the fix

• Usually expressed as mean time to

repair
 Availability
• The amount of time a piece of
equipment is available for use.
• Availability affected by
– Time equipment in for service
– Time equipment in for repair
 Availability & Support Cost

• High Reliability +
• High Maintainability =
– High availability
– Low support cost
 Technology Changes
• Emissions standards necessitated
– Fuel injection
– Electronic distributors
– Hot spark plugs
– Three and four valves/cylinder
– Mass air flow sensors
– Oxygen sensors
– Exhaust gas regulators
 Scheduled Maintenance
Comparison
• 1978 Omni (1.7 Liter) • 1998 Cirrus (2.0 Liter)
• Change Coolant 30 K miles • Change Coolant 36 K miles
• Change Oil & Filter 3 K miles • Change Oil & Filter 3 K miles
• Change Air Filter 30 K miles • Change Ail Filter 30 k miles
• Change Spark Plugs 15 K miles • Change Spark Plugs 30 K miles
• Ignition Timing 15K miles • Ignition Timing N/A
• Replace PCV 30 K miles • Replace PCV 30 K miles
• Service Trans 15 K miles • Service Trans 15 K miles
• Plug Wires As needed • Plug Wires 60 K miles
• Replace Belts As needed • Replace Belts 60 K miles
• Replace Timing Belt 60 K miles • Replace Timing Belt 60 K miles
• Change Fuel Filter 15 K miles • Change Fuel Filter N/A
 Cost of Repair (Fuel System)

Vehicle Component Pt Cost Hours Lbr Rate Lbr Cost Tot Cost

1978 Omni, Carb Fuel Filter $ 3.00 0.3 $94.00 $ 28.20 $ 31.20
1.7 Liter, 4 Cylinder Fuel Pump $ 50.00 0.5 $94.00 $ 47.00 $ 97.00

1998 Cirrus, Inject Fuel Filter $ 27.00 0.7 $94.00 $ 65.80 $ 92.80
2.0 Liter, 4 Cylinder Fuel Pump $ 215.00 1.4 $94.00 $ 131.60 $ 346.60

1998 Escort, Inject Fuel Filter $ 16.00 0.6 $94.00 $ 56.40 $ 72.40
1.9 Liter, 4 Cylinder Fuel Pump $ 255.00 0.8 $94.00 $ 75.20 $ 330.20

1998 Cavalier, Inject Fuel Filter $ 19.00 0.7 $94.00 $ 65.80 $ 84.80
2.2 Liter, 4 Cylinder Fuel Pump $ 457.00 1.8 $94.00 $ 169.20 $ 626.20
Fuel System Maintenance Cost
Over Life of Vehicle
Vehicle Task Cost Freq Total Cost

1978 Omni Change Fuel Filter $ 31.20 1/15 K miles $ 310.20

Change Fuel Pump $ 97.00 1/75 K miles $ 194.00
$ 504.20

1998 Cirrus Change Fuel Filter $ 92.80 1/150 K miles $ 92.80

Change Fuel Pump $ 346.60 1/150 K miles $ 346.60
$ 439.40

1998 Escort Change Fuel Filter $ 72.40 1/30 K miles $ 362.00

Change Fuel Pump $ 330.20 1/150 K miles $ 330.20
$ 692.20

1998 Cavalier Change Fuel Filter $ 84.80 1/30 K miles $ 424.00

Change Fuel Pump $ 457.00 1/150 K miles $ 457.00
$ 881.00
 When Things Go Wrong
Fault Parts Cost Labor Cost Total Cost

Lens separated from $75.00 $47.00 $122.00

fog lamp

Heat/AC valve broke $150.00 $600.00 $750.00

Premature spark plug $48.00 $200.00 $248.00

wearout

Headlight gasket $300.00 $94.00 $394.00

separation
 Automotive Design Trends

• Longer vehicle life (150 K miles)

• High reliability for critical components
• Low reliability for non critical components
• Minimal preventive maintenance
• Built in diagnostics
• Fewer repair parts, more assemblies
• Poor maintainability
 Effect on Consumers

• Few critical component failures

• Several non critical component failures
• High parts cost
• High labor cost
• Support costs escalate after 100k miles
 What can we do?
• Be aware of hidden vehicle support cost
• Read consumer type evaluations
• Look for accessibility of components
• Talk to mechanics
• Ask dealer for scheduled maintenance
costs.
• Complain about support costs
Logistics Engineering and Support Engineering

Questions

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